Duke Energy's CEO Paid $21 Million As Rates Set To Increase

CHARLOTTE, N.C. (AP) - Duke Energy says its top executive's compensation has more than doubled over the past two years.

The country's No. 2 electricity company by total customers reported to shareholders that Chief Executive Officer Lynn Good was paid more than $21.4 million in 2017, an increase from $10.8 million in 2015.

The Charlotte-based company won approval to raise prices on about half its North Carolina customers by 6 percent, and wants to increase rates on the rest of its largest market by 10 percent.

UPDATED 3/11/18 8:48 P.M.

Duke Energy sent over this statement to WFMY News 2 explaining how the CEO's pay is set:

Duke Energy company statement

In compliance with a new federal rule, Duke Energy stated in its preliminary proxy statement (filed today with the SEC) that CEO Lynn Good’s 2017 compensation was approximately $21.4 million, and the median 2017 compensation of its other employees was approximately $122,000 – resulting in a “CEO-to-median employee” compensation ratio of 175 to 1. (The median employee’s total compensation comprises salary, annual bonus, pension accruals and company matching contributions to the employee’s 401(k) retirement plan.)

Duke Energy maintains a competitive, market-based compensation structure for every job at every level, including the CEO position, to ensure attraction and retention of top talent.

Duke Energy CEO Lynn Good oversees one of the largest critical-infrastructure energy companies in the U.S. – a job that comes with tremendous responsibilities – most importantly, the provision of safe, reliable electric service to 7.5 million customers in six states, and natural gas service to 1.6 million customers in five states, 24/7.

Approximately 90 percent of her compensation is stock and performance-based – which means the vast majority of her compensation is at risk and thus might not be earned if future corporate performance is below certain levels.

Under Lynn Good’s leadership, Duke Energy in 2017 had a strong year delivering value for customers and shareholders. Examples:

Reliable, affordable electric service to 7.5 million customers – with rates below the national average.

A new, more stringent carbon dioxide emissions reduction of 40 percent by 2030, from 2005 levels.

Continued construction of new, cleaner natural gas power plants in three states.

Growth in the company’s natural gas business, with the opening of the Sabal Trail Pipeline and progress in obtaining approvals to build the Atlantic Coast Pipeline.

An approximately 4 percent increase in the company’s dividend payment – the 11th consecutive year of dividend growth.

A 13 percent total shareholder return – exceeding the 12.8 total return of the industry benchmark Philadelphia Utility Index.